An annuity is a type of insurance service. In general terms, in an annuity contract, an insurance company and an annuitant contract for the annuitant to make one or more payments to the insurance company. For that consideration, the insurance company makes periodic payments to an annuitant. By way of example, the insurance company may be obliged to make a payment of a predetermined amount to the annuitant annually for a predetermined time period. In another example, the insurance company is obliged to make payments of a predetermined amount to the annuitant annually for the life of the annuitant.
In a typical annuity product, an asset value associated with an account is annuitized. In other words, the asset value is not available for use by the annuitant, or for use in estate planning.
In the prior art, one exemplary product provides a variable annuity, based on a single premium, which also includes a stream of payments, funded by an additional fee, that commences at an age selected by the annuitant.